SAN FRANCISCO (MarketWatch) -- Engineering and construction company McDermott International reported late Wednesday third-quarter net income fell to $85.6 million, or 37 cents a share, from $140.4 million, or 61 cents, a year ago. The company blamed the decline on weaker results for its offshore oil and gas construction business, especially in the Middle East. Revenue for the quarter rose 26% to $1.32 billion. Analysts polled by FactSet Research had predicted the Houston-based company would post earnings of 71 cents a share on $1.88 billion in revenue. McDermott shares closed ahead of the report with a 10% loss at $15.56.